Frank Leone Casino
'We are incredibly proud of the progress our team members have made in establishing Ocean Resort Casino as one of the premier gaming and leisure destinations in the United States,' said Frank Leone, the casino's CEO. COVID-19 UPDATES Click on each tab to read more about the Coronavirus Safety and Guidelines. Message from The Mount Airy Team In response to the recent COVID-19 restrictions issued by Pennsylvania Governor Wolf, Mount Airy Casino Resort will temporarily close on December 12, 2020 at 12:01am. During the closure, all offers and promotions scheduled at Continue Reading Covid-19 Updates. Frank Leone, right, CEO of Ocean Resort Casino, testifies during a casino license hearing in front of the Casino Control Commission on Thursday, June 21, 2018. Ocean Resort Casino was granted a. From Frank Leone, CEO of Ocean Resort Casino: “We are incredibly proud of the progress our team members have made in establishing Ocean Resort Casino as one of the premier gaming and leisure destinations in the United States.”.
Frank Leone Casino
ATLANTIC CITY, N.J. (AP) — A New York hedge fund that lent money to Atlantic City’s Ocean Resort Casino is assuming ownership of it.
Luxor Capital Group was identified as the new owner in a press release Monday from the casino. The company, which is not related to the Luxor casino in Las Vegas, will take over the ownership interest of Bruce Deifik (DIE’-fick) and his family.
Luxor Capitol will assume control once it receives interim authority to own a casino. Until it gets that approval, which could come within three to four months, a trust will be created for the casino’s temporary ownership.
Once Luxor Capital completes a promised $70 million investment into the property, a trustee will be appointed to oversee the trust until the company is deemed suitable to hold a casino license in New Jersey.
The casino-hotel plans to operate normally during the transition. The ownership change comes less than seven months after the property’s re-opening.
“We are incredibly proud of the progress our team members have made in establishing Ocean Resort Casino as one of the premier gaming and leisure destinations in the United States,” said Frank Leone, the casino’s CEO. “We are thankful for the support we have received from the broader Atlantic City and New Jersey community and look forward to an exciting 2019.”
Deifik, who earlier this month said he would retain a small, non-controlling interest in the casino, will have no ownership of it at all. In announcing the casino would change hands earlier this month, Deifik said the new ownership would invest $70 million to help get the property through the slow winter months.
Ocean Resort was one of two formerly shuttered casinos that reopened the same day last June, along with Hard Rock.
The reopenings brought Atlantic City’s casino total to nine, shortly after five casinos had shut down in a market that could not support them all. The Atlantic Club, Showboat, Revel and Trump Plaza all closed in 2014, and the Trump Taj Mahal closed in 2016. (The Taj Mahal reopened as Hard Rock last year.)
The revival of the two casinos immediately raised questions as to whether Atlantic City was making the same mistake that led to the first wave of shutdowns: having too many for all to thrive.
In its first incarnation as Revel, the $2.4 billion casino lasted just over two years before closing in 2014. Florida developer Glenn Straub bought it out of bankruptcy court for $82 million, and sold it last year to Deifik, a Colorado developer, for $200 million.
Deifik decided to buy the casino sight unseen on the recommendation of his advisers, and set about renovating it, adding an indoor golf facility and one of the state’s most extensive sports betting facilities.
He and his management team said they were confident they had fixed what went wrong with Revel. Deifik reconfigured the maze-like casino floor, allowed smoking on it again, welcomed gamblers of all income and playing levels, and placed a premium on customer service.
He took over Ocean Resort with far less debt than what sank Revel. But the casino’s gambling revenue remains near the bottom of the pack along Atlantic City’s nine casinos.
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30-second summary
- Ocean Resort Casino is now majority-owned by Luxor Capital Group
- Former owner Bruce Deifik maintains his minority share
- Revel was purchased in January 2018 by Deifik for $229m (£174.2m) with financing from Luxor and J.P. Morgan Chase
- Luxor commits $70m (£53.3m) in new strategic capital to the resort
In early 2019, the owner of the Ocean Resort Casino in Atlantic City announced that the property would be changing hands. Bruce Deifik is a real estate developer who purchased the property in 2018. The former principal owner of the Ocean Resort will no longer have the majority stake in the property. The new majority stakeholder has now been revealed as the Luxor Capital Group.
New Owner
The Luxor Capital Group is a private investment firm based in New York State. The company has been involved with the Ocean Resort Casino since Deifik made the purchase. Formerly known as the Revel Casino Hotel, the property was purchased by Deifik in January of last year for $229m.
Deifik received financing for the purchase from Luxor Capital Group and J.P. Morgan Chase. Two bridge loans were provided. J.P. Morgan Chase provided $110m (£83.7m) and Luxor supplied $122.5m (£93.2m). Luxor Capital will now assume control once given interim authority to own a casino venue. Since approval can take time, a trust will be created for the temporary ownership of the property.
The CEO of Ocean Resort Casino, Frank Leone, said: “We are incredibly proud of the progress our team members have made in establishing Ocean Resort Casino as one of the premier gaming and leisure destinations in the United States. We opened up the property even more effectively to the Boardwalk, and activated retail spaces and food and beverage options that have been extremely well-received by our guests.”
Continued Investment
When Deifik purchased the casino property, he quickly began renovating and making additions. He bought it in January 2018 and it was open by June. An indoor golf facility was added at the time and sports betting was added this year, offering one of the most extensive options for wagering in the state. The casino floor was reconfigured during the renovations as well.
Frank Leone Casino Exec
The new owner, Luxor Capital, plans to use $70m (£53.3m) as strategic capital. A buffet, along with more suites and rooms, will be added to the property with the investment. The casino floor will also be improved. Luxor also has plans to make a substantial increase in entertainment options and player events this year.
Frank Leone Casino Exec
The investment should close early next month if the regulatory approvals and final documentation come through. The proposal would help fund the projects for this year and provide the casino with more financial flexibility. After the investment is approved, Luxor will begin the licensing process via the New Jersey Division of Gaming Enforcement.